Legal Question in Civil Litigation in California

It depends on a number of factors. Was the loan only verbally agreed on, or is there a written contract, promissory note, or other debt agreement or instrument? If it was not put in writing at the time, the limitation period to sue is two years. If it was written, it is four years. But in either case, the terms of the loan and how payments were and/or were supposed to be made will affect when the 2 or 4 year limit starts to run.

If the filing date of the lawsuit is more than 4 years from the time the last payment was due, or some debt collector is threatening such a lawsuit, I would be very interested in hearing from you.

CAN they sue you? Yes. Can they win? Depends upon the terms of the contract, and the proof available, and whether they sued 'in time'. If this is small claims court, go tell your story to the judge, and present any evidence you have in defense.

You can get sued. The outcome of the case depends on how the judge decides the facts. The statute of limitations for breach of an oral contract is two years. The statute of limitations for breach of a written contract is four years. The statute begins to run when the contract is breached, meaning a default on payments, not when the contract is made. Your case is going to depend on the terms of the contract, and when it was breached.